Banks that offer up to 8% interest on savings accounts

Following the Reserve Bank of India’s (RBI) repo rate hike in the last financial year from 4 percent to 6.50 percent, several banks raised interest rates on savings accounts. Smaller private banks and small finance banks offer rates up to 8 percent on savings account, which is higher compared to leading private banks.

Make a practice to keep part of your surplus income in savings accounts for liquidity and emergencies during uncertain times. Here are the private banks offering the best interest rates on savings accounts. The data is compiled by BankBazaar.

DCB Bank offers interest up to 8 percent on savings accounts. Among private banks, this bank offers the best interest rates. The minimum balance requirement is Rs 2,500 to Rs 5,000.

Ujjivan Small Finance Bank is offering interest up to 7.5 percent on savings accounts. Among small finance banks, this bank offers the best interest rates.

Federal Bank is offering interest up to 7.15 percent on savings accounts. The average monthly balance requirement is Rs 5,000.

DBS Bank offers interest up to 7 percent on savings accounts. Among foreign banks, this bank offers the best interest rates. The average quarterly balance requirement is Rs 10,000 to Rs 25,000.

AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000, Rs 2,500 to Rs 10,000 and Rs 2,000 respectively.

IDFC First Bank and RBL Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 10,000 and Rs 2,500 to Rs 5,000 respectively.

Smaller private banks and small finance banks are offering higher interest rates on savings accounts compared to leading private and public sector banks to acquire new retail customers. You should choose a bank with a long-term track record, good service standards, a wide branch network, and ATM services across cities; a higher interest on savings accounts would be a bonus.

The interest rate on savings accounts for all BSE-listed private banks and small finance banks are considered for data compilation. BankBazaar compiled the data as of July 5, 2023. Banks whose websites don't advertise the data are not considered. The minimum balance requirement for the regular savings account and excluding a basic savings bank deposit (BSBD) account is considered.